This study has been created for Long Beach Is-land homeowners and buyers as a guide to evalu-ate the current market values of single-family Bayfront properties on Long Beach Island. I hope this information is of value to you! WillyKahl

2013 YEAR END BAYFRONT STUDY

LBI BAYFRONT NEWSLETTER

Features:

Single Family Bayfront Values

Bayfront Single Family Sales Data

Bayfront Sales Price Chart

Beach Replenishment Project

Supply vs. Demand Chart

Featured Property

Values of Single Family Bayfront Properties Once Again on the Rise

Bayfront data varies so much that I have computed a more leveraged curve by calculating the price

per foot of bay frontage for single family bayfront properties. Using this calculation, last year the average

bayfront sale was $1,535,751. This year the average price (based on linear foot) increased to $1,634,258.

To determine bayfront property value the following numbers should be multiplied by the bayfront footage.

The average sale prices per linear foot each year are as follows: $19,697 in 2004, $26,818 in 2005, $22,318

in 2006, $23,933 in 2007, $22,659 for 2008, $17,578 for 2009, $20,510 for 2010, $22,524 for 2011 and back

to $18,960 for 2012 and up to $23,023 per linear foot for 2013. Of course, this average varies from town-to-

town and also depends on condition of home and depth of lot. Also, I have maximized water frontage to 150

feet per lot (some lots are double or triple edged on peninsulas, and a maximum was needed for a more accu-

rate average).

To calculate the current value of an average bayfront property by linear feet multiply the amount of

bayfront feet by $23,023. From 2004 to present the average linear foot calculates to 83.4 feet of bay frontage

per sale (maximum of 150’ for peninsulas). For 2013 the average price is $23,023 x 73 = 1,680,679. The

average price of a bayfront sale in 2012 was $1,744,320 but those lots averaged 92' of bay frontage creating

a linear per foot sale of $18,960.

After having calculated Bayfront values since 2004 and oceanfront values since 1992, I noticed that

LBI Bayfront and Oceanfront Homes appreciate at approximately the same rate.

The years 2010-2013 have proven to have increased sales activity and a higher supply/demand ratio

than in 2009. It appears the value of bayfront properties have leveled off and may even have gained slightly

in value.

Sale prices vary because the variables of each property sold differ each year. In 2005 many bayfront

homes that sold were new construction which brought higher than expected values. In 2006 the majority of

bayfront properties that sold were teardowns which created a decline in values. In 2009 prices were lower

than expected due to numerous corner lot sales with more than 125’ on the bay and an average age exceeding

30 years (many were teardowns). In both 2010 and 2011 smaller lots with an average of 78.5 feet on the

bayfront sold which actually brought average values up. This past year many North end properties sold (10

out of the 18 sales were in North Beach, Harvey Cedars, Loveladies, and Barnegat Light) bringing a slightly

inflated average sales price.

Willy Kahl LBI REALTY GROUP, Broker of Record-Bayfront Specialist

1919 Long Beach Blvd., Ship Bottom, NJ 08008

Cell (609) 709-1020 willykahl@gmail.com www.LBIsales.com

Office (609) 494-8900 Fax (609) 494-8901

LBI BAYFRONT NEWSLETTER W INTER 2014 PAGE 2

Get the LBI Bayfront Newsletter before it hits the press! Please e-mail Willy Kahl at willykahl@gmail.com and tell him you prefer these newsletters via e-mail today!

2013 BAYFRONT SALES from South to North

For properties currently available for sale and for those under contract, please feel free to call me or visit www.lbisales.com. I would be happy to e-mail, mail, or fax current Multiple Listing computer detailed reports and/or generate automatic updates with your personal criteria!

Note: All Statistics are deemed reliable but not guaranteed. Data was retrieved from the Jersey Shore Regional Multiple Listing Service

Computer. This letter is not intended to solicit property currently listed. Egon Willy Kahl’s opinion has been stated throughout. This news-

letter is an exclusive publication and cannot be reproduced without prior written permission from Egon Willy Kahl. ©

TOWN ADDRESS DATE LIST SELL SELL

$/ FEET AGE ASSESS ASSESS ASSESS SELL$/ #BEDR. #BATH

SOUTH SOLD PRICE $ PRICE $ LIST$ WTR BUILD $ LAND $ TOTAL$ ASSESS$

HOLGATE 5006 West Ave. 3/19/13 699,000 630,000 90% 49 84 56,200 580,700

636,900 0.99 3.00 1.00

HOLGATE 16 W. Beck Ave. 10/21/13 769,000 720,000 94% 100 29 233,800 525,000 758,800 0.95 3.00 2.00

BEACH HA-VEN

526 Leeward Ave. 9/19/13 2,995,000 2,900,000 97% 150 12 760,600 1,872,000

2,632,600 1.10 5.00 4.00

BEACH HA-VEN PARK

20 W. Lillie Ave. 4/9/13 1,199,000 1,099,000 92% 91 23 395,100 987,500

1,382,600 0.79 6.00 3.50

BEACH HA-VEN PARK

16 W. Cali-fornia Ave. 6/21/13 1,495,000 1,325,000 89% 28 4 560,600 673,100

1,233,700 1.07 5.00 3.00

2013 AVG 5 SOLD IN SOUTH 1,431,400 1,334,800 93% 84 30 401,260 927,660

1,328,920 1.00 4.40 2.70

CENTER

SHIP BOTTOM 2419 Central Ave. 3/27/13 575,000 525,000 91% 25 73 306,100 405,000 711,100 0.74 3.00 2.00

SURF CITY 466 Scho-derer Lane 7/2/13 1,999,999 1,950,000 98% 60 17 573,200 786,600

1,359,800 1.43 5.00 5.00

SURF CITY 1415 Barne-gat Ave. 1/16/13 769,900 760,000 99% 21 63 389,300 752,800

1,142,100 0.67 4.00 2.50

2013 AVG 3 SOLD IN

CEN-

TER 1,114,966 1,078,333 97% 35 51 422,867 648,133

1,071,000 1.01 4.00 3.17

NORTH

NORTH BEACH

6 Edgewater Drive 12/20/13 4,295,000 4,100,000 95% 115 5 1,350,800 1,230,000

2,580,800 1.59 6.00 6.00

HARVEY CE-DARS

9A W. Ber-gen Ave. 3/1/13 1,575,000 1,475,000 94% 52 20 314,100 987,100

1,301,200 1.13 4.00 3.00

HARVEY CE-DARS

21 Cedars Ave. 6/21/13 887,500 875,000 99% 50 73 279,400 563,000

842,400 1.04 3.00 1.50

HARVEY CE-DARS

47A Cedars Ave. 10/1/13 1,100,000 950,000 86% 85 52 131,098 734,546 865,644 1.10 2.00 1.00

HARVEY CE-DARS

7806 Com-pass St. 8/26/13 1,100,000 1,050,000 95% 50 73 245,500 1,045,400

1,290,900 0.81 4.00 2.00

HARVEY CE-DARS

21 West 85th St, 7/26/13 3,550,000 3,200,000 90% 112 5 879,100 978,700

1,857,800 1.72 6.00 5.50

LOVELADIES 6 Long Beach Blvd. 7/8/13 3,649,000 3,388,800 93% 125 17 1,216,800 2,537,500

3,754,300 0.90 7.00 6.50

LOVELADIES 77 Bayview Drive 11/22/13 3,695,000 3,195,000 86% 98 13 1,592,480 1,720,539

3,313,019 0.96 5.00 5.00

HIGH BAR HARBOR

13 Sunset Blvd. 12/20/13 975,000 890,000 91% 25 0 595,000 294,000 889,000 1.00 5.00 3.50

HIGH BAR HARBOR

17 Sunset Blvd. 1/18/13 1,395,000 1,220,000 87% 75 0 607,500 492,500

1,100,000 1.11 5.00 3.50

2013 AVG 10 SOLD IN NORTH 2,222,150 2,034,380 92% 79 26 721,178 1,058,329

1,779,506 1.14 4.70 3.75

2013 AVG

LBI 18 SOLD IN 2013 1,817,967 1,680,711 92% 73 31 582,593 953,666

1,536,259 1.09 4.50 3.57

WINTER 2014 PAGE 3

Chart of Average Bayfront Sales

LBI BAYFRONT NEWSLETTER

There have been 18 bayfront single family home sales during 2013. There were a total of 21 Bayfront Single

family home sales in 2012, 17 single family bayfront sales in 2011, 23 in 2010, and 16 total sales in 2009. Currently

there are three bayfront single family homes under contract. In addition, the number of single family bayfront proper-

ties for sale (supply) has decreased slightly from 42.5 average in 2012 to 41.5 average in 2013.

I calculate our supply to demand curve by dividing the number of bayfront properties sold in the latest half

year period by the amount of bayfront properties currently for sale. These are two key factors to prices stabilizing

with values on the rise in the near future. During 2013 our supply vs. demand ratio was .22. The 2012 year's supply

to demand ratio was .25 compared to 2011 ratio of .19. This is slightly better than in 2009 which was one of the low-

est with a supply vs. demand ratio of 0.17. I feel this ratio will gain quickly as time goes on and sales volume in-

creases.

Trends relating to bayfront and oceanfront appreciation and depreciation are similar. I have oceanfront data

as far back as 1992 and bayfront data beginning in 2004. During 2002 supply vs. demand ratio was the highest in 21

years at 1.09 for oceanfront sales. Our record low of 15 oceanfront homes available on the market was in 2002. Our

high was 101 oceanfront homes available in 1993. There are approximately 1100 oceanfront homes and 1000 bay-

front homes on LBI.

Oceanfront sales are showing us a quicker recovery and I believe bayfront sales should follow soon!

Bayfront Sales Vs. Number of Bayfront Properties Available For Sale Remains Steady

Governor Christie and LBI mayors have been pushing for the beach replenish plan for several years. The

holdup was a few Oceanfront owners refusing to sign off on easements which would allow the Army Corps of Engi-

neers dune access.

The Christie administration has since implemented a new plan under eminent domain allowing use of the

easements. Although the Corps previously estimated that the sand and dune replenishment would begin in late spring

or early summer the anticipated start date has been pushed back to the fall of 2014.

It appears LBI will have at least two beaches starting at the same time, and if equipment is available, as many

as four beaches will all be filled simultaneously.

The real estate division of the Corps is supposed to determine a scope of work for appraisals related to obtain-

ing remaining easements via eminent domain.

If the project goes out to bid in June it is anticipated that work will begin Sept. 1 or later. Corps public affairs

officer Steve Rochette confirmed, “It’s not likely the project would begin before the end of the summer. There are so

many variables that it can be difficult to predict start dates in advance,”

Corps spokesman Ed Voigt stated a Superstorm Sandy-related supplemental bill funded work that was com-

pleted last year to restore the beaches in Surf City, Harvey Cedars and a mile of Brant Beach, all which had under-

gone replenishment before the storm. As for the rest of the Island – “that’s next.” That work will be 100 percent fed-

erally funded although future periodic re-nourishment will be cost shared with the state and the municipality.

Beach Replenishment Project Postponed Until Early Fall

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

4,000,000

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

BAYFRONT AVERAGE SALE PRICE

SOUTH

CENTER

NORTH

AVG. Price

Price/avg.ft.

Dependable Bayfront Data Enclosed! For properties currently available for sale and those under contract, please feel free to call or email me. I’ll be happy to e-mail, mail, or fax current Multiple Listing Computer detailed reports!

Willy Kahl’s Bayfront Newsletter Egon Willy Kahl / Broker of Record LBI Realty Group 1919 Long Beach Blvd. Ship Bottom, NJ 08008

Cell (609) 709-1020 EMAIL: WILLYKAHL@GMAIL.COM Office (609) 494-8900 Fax (609) 494-8901

WWW.LBISALES.COM

FIRST CLASS

PRESORT MAIL

U.S. POSTAGE

PAID

TOMS RIVER, NJ

PERMIT NO. 77

FEATURED PROPERTY-NORTH BEACH OCEANFRONT

Dependable Bayfront Data Enclosed!

First time this North Beach Oceanfront is Offered for Sale

Magnificent Ocean Views! 80 feet on the Ocean plus a 20 foot easement creates the feeling of 100 feet on the Oceanfront! Well maintained 3 Bedroom, 2 Bath ranch, open living, kitchen and dining area with fire-place overlooking the beautiful Atlantic Ocean. CAFRA permits in place for expansion or new construc-tion. Deeded bay access and dock with slip included as part of North Beach Estates for a small monthly fee. Current CAFRA footprint is approximately 35' x 40.5' for new house. This is a larger footprint than ex-isting house and also includes expanded east and new southern decks. Enjoy this exist-ing oceanfront home this summer while planning construction of your new dream home! $2,149,000.